]]>By: Jan Störgerhttp://OSINTblog.org/2013/05/09/bitcoin-a-threat-to-national-security/#comment-1744
Fri, 31 May 2013 11:07:19 +0000http://OSINTblog.org/?p=1639#comment-1744An interesting update: Liberty Reserve, a major currency exchange and payment service much used in bitcoin trading was shut down and its founder was arrested last week. See http://www.h-online.com/security/news/item/Liberty-Reserve-shut-down-founder-arrested-1872682.html
]]>By: Steve Moyerhttp://OSINTblog.org/2013/05/09/bitcoin-a-threat-to-national-security/#comment-1650
Sat, 18 May 2013 11:36:25 +0000http://OSINTblog.org/?p=1639#comment-1650Bitcoin is sidestepping the responsibility to regulate its use. Therefore, govt will come into the picture. Bitcoin isn’t really an alternative to money. If you can’t pay your taxes with it, it isn’t really an alternative currency.

See My Vermont Freedom Currency proposal at http://vfc.nodes.org Freedom requires choice. If you have “no other choice” but to use money, then you are living under a tyranny … the “tyranny of money.”

Get political. Insist on REAL monetary reforms. Insist on CHOICE!

]]>By: Jan Störgerhttp://OSINTblog.org/2013/05/09/bitcoin-a-threat-to-national-security/#comment-1606
Tue, 14 May 2013 08:09:27 +0000http://OSINTblog.org/?p=1639#comment-1606@TEBEXU: I agree. That is what I meant by ‘deterministic’. Money supply depends on computing power but the hashing difficulty variation makes sure it pretty much follows a given path.
]]>By: Jan Störgerhttp://OSINTblog.org/2013/05/09/bitcoin-a-threat-to-national-security/#comment-1597
Mon, 13 May 2013 15:34:48 +0000http://OSINTblog.org/?p=1639#comment-1597@Fudclearer: Ok we can assume that legal trade is on the rise at least. But how do we really know? Are you referring to trades BTC vs. goods/services or BTC vs. money? Do you have any sources about the ratio of illegal vs. legal trades (considering goods, services, currency exchange)? I assume that the current bitcoin price is much driven by currency trading, not so much by purchasing goods and services. But I would be interested in more reliable data about the illegal share here as well, e.g. money laundering? I think this market certainly needs more transparency through regulation. Some exchange markets already seem to introduce verification of traders’ identities and bank accounts.
]]>By: fudclearerhttp://OSINTblog.org/2013/05/09/bitcoin-a-threat-to-national-security/#comment-1594
Mon, 13 May 2013 11:20:23 +0000http://OSINTblog.org/?p=1639#comment-1594You say “it can be safely assumed that illegal actions largely contribute to the rise of the bitcoin market.” but this is not true. Legitimate trade has already eclipsed the illegal trades. When the Silk Road is down, trade with bitcoin is barely affected.

You could say that the silk road was a proving ground where bitcoin demonstrated it could store value without any theft-related bugs, but it is now mainstream and bitcoin will continue to do just fine without illegal trades.

]]>By: tebexuhttp://OSINTblog.org/2013/05/09/bitcoin-a-threat-to-national-security/#comment-1593
Mon, 13 May 2013 10:32:54 +0000http://OSINTblog.org/?p=1639#comment-1593> So the money supply is pegged to the provision of computing power – for now.

This is not accurate. Introducing or reducing computing power does not influence the rate of bitcoin production. The systemic mining reward is presently set at 25 bitcoins every 10 minutes on average. Adding additional computing power causes the system to increase hashing difficulty, bringing the average mining rate back within the 10 minute average.